Richardson’s 2016 Sales Challenges Study Highlights Issues in Conveying Value and Understanding Client Motivations
By Meghan Steiner
There is never a bad time for sales teams to take a good, hard look at their current processes and evaluate where they are running into issues. By identifying commonly occurring challenges during the different phases of the sales process, teams of all sizes can work toward refining their approach and mitigating the impact of those hurdles.
According to Richardson’s 2016 Selling Challenges Study, sales teams across industries often share common issues in their sales processes and run into similar challenges while negotiating and closing deals. The study surveyed more than 400 sales professionals, 85% of whom operate in B2B sales. Responses to several questions throughout the study highlighted issues with conveying value and understanding client motivations.
Conveying Value and Overcoming Commoditization
When asked about sales negotiations in 2016, 29.2% of respondents said “gaining higher prices” would be their toughest challenge for the year. This was the second year in a row that this concern topped the list, rising from 20.11% of responses in 2015.  
Conveying value to justify higher prices has always been difficult, but is even more difficult in a worldwide marketplace where commoditization can happen in the blink of an eye. The added layer of procurement to the process – with procurement coming in at the end of the deal and maintaining a laser focus on the overall cost of services – makes it more difficult for sales professionals to effectively negotiate. 
To meet these challenges in sales, sales professionals will have to retool their skill set and research processes to not only better convey the value of their product, but quickly dispel price-related objections with facts and statistics that speak directly to the client’s needs. Prioritize potential trades and do not make concessions without asking for something in return.
 
Changing Tactics and Strategies to Overcome Challenges in Sales
An overwhelming 48% of respondents stated that competing against low-cost providers was their single largest challenge in closing a deal, followed by positioning a competing value proposition (differentiating your product/service) coming in at 14.8%.
Competing against low-cost providers has been a recurring theme in the Richardson Sales Challenges study each year. Sales professionals are constantly tasked with finding new ways to bring insights and value to the sales meeting. Investing more time in understanding a prospect’s business, industry and metrics of success can go a long way in making a pitch stand out compared to more commoditized products. In fact, according to a Forrester report, 73% of buyers do not believe salespeople are knowledgeable about the business they are pitching to. Richardson recommends spending more time on industry research before a meeting to learn how to best address the prospect’s needs and the ROI they can expect with your offering. 
 
Responding to Changes in the Marketplace
Over 27% of respondents believed that finding ways to add relevant value for various stakeholders was their greatest difficulty in terms of managing an account.
Richardson’s study makes it clear that finding ways to convey value and align that value with the decision making processes of clients is the single biggest issue facing sales professionals today. This is facilitated by a rapidly evolving marketplace and a worldwide economy that has made it easier than ever for products and services to quickly become commoditized.
There has recently been a shift in earlier parts of the sales cycle – qualifying leads and lead nurturing – being driven by internal sales departments, sales development resources, and even marketing departments. To ensure success with these different departments, thorough training must be implemented from the start, instilling team members with strong sales skills, knowledge of a given product, and a deep understanding of clients / prospects and their respective industries.
Although the year is young, it’s important to take a deep look at the challenges facing your sales team and arm them with the tools to overcome them. Richardson’s 2016 Selling Challenges Study offers greater insights into the concerns of many sales professionals today. Download the full report here.
 
Meghan Steiner is the Director of Marketing at Richardson Sales Training. Meghan manages all demand generation and sales enablement efforts within the organization with the goal of creating new business opportunities.